Model Answer
0 min readIntroduction
The Consumer Protection Act, 2019, is a landmark legislation aimed at strengthening consumer rights and providing a robust mechanism for redressal of grievances. Central to the effective implementation of this Act is a clear understanding of who constitutes a ‘consumer’. The Act defines a consumer as a person who buys any goods or avails any service for consideration. This definition, while seemingly straightforward, has undergone significant evolution, particularly with the 2019 Act broadening its scope to encompass online transactions, teleshopping, direct selling, and multi-level marketing. Understanding the ambit and scope of this definition is crucial for ensuring effective consumer protection in the modern marketplace.
Defining the ‘Consumer’ under the CPA, 2019
Section 2(7) of the Consumer Protection Act, 2019 defines a ‘consumer’ as any person who:
- Buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.
- Utilizes any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment.
- Includes any beneficiary of such goods or services who uses such goods or services with the approval of the buyer or user.
Inclusions within the Definition
The 2019 Act significantly broadened the definition of ‘consumer’ compared to the 1986 Act. Key inclusions are:
- Online Transactions: Consumers engaging in e-commerce are explicitly included, addressing the growing digital marketplace.
- Teleshopping, Direct Selling & Multi-Level Marketing: These modes of purchase are now covered, providing protection against unfair trade practices in these sectors.
- Services with Deferred Payment: The definition extends to services acquired on credit or installment plans.
- Beneficiaries: Individuals using goods or services with the purchaser’s permission are also considered consumers (e.g., family members).
Exclusions from the Definition
Certain individuals are explicitly excluded from being considered ‘consumers’ under the Act:
- Commercial Purpose: A person acquiring goods or services for resale or for commercial purposes is not a consumer. However, a self-employed individual using goods/services for earning livelihood is considered a consumer.
- Free Services: Services availed of free of charge are generally excluded, though exceptions exist.
- Professional Services: Services rendered by professionals (e.g., doctors, lawyers) are subject to specific regulations and may not fall under the purview of the Act in all cases, particularly if a contractual relationship exists.
Distinction from the 1986 Act
The 2019 Act addresses several ambiguities present in the 1986 Act. For instance, the 1986 Act lacked clarity on online transactions. The 2019 Act explicitly includes them. Furthermore, the definition of ‘service’ has been expanded to include services provided by banks, insurance companies, housing construction finance companies, and other financial institutions.
| Feature | Consumer Protection Act, 1986 | Consumer Protection Act, 2019 |
|---|---|---|
| Online Transactions | Not explicitly covered | Explicitly included |
| Teleshopping/Direct Selling | Limited coverage | Comprehensive coverage |
| Scope of ‘Service’ | Narrower definition | Expanded to include financial institutions |
Recent Developments & Judicial Interpretations
Recent judicial pronouncements have further clarified the scope of ‘consumer’. Courts have emphasized a purposive interpretation of the Act, prioritizing consumer welfare. For example, the National Commission has held that a purchaser of a plot in a housing scheme is a consumer, even if the builder defaults on construction, highlighting the protection extended to pre-construction contracts.
Conclusion
The Consumer Protection Act, 2019, significantly expands the definition of ‘consumer’ to encompass a wider range of transactions and individuals, particularly in the digital age. By clarifying inclusions and exclusions, and addressing ambiguities present in the previous legislation, the Act aims to provide more effective protection to consumers. Continued judicial interpretation and proactive enforcement will be crucial in realizing the full potential of this legislation and ensuring a fair and transparent marketplace.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.